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Not just Solutions, but Results
In the real world, retailers make investment decisions that impact their overall profitability every day. How much to buy. Where, when, and how much inventory to position in a store or a DC. How much to markdown and when. And these decisions have a big impact on profitability and customer satisfaction.
Existing technology helps retailers manage these decisions to key inventory KPI's, such as in-stocks, service level, turn, and sell through. 4R's Profit Optimized Inventory solutions take retailers to the next level of understanding the impact of these decisions on the ultimate KPI – profitability – and managing those decisions to maximize profits.
 As 4R client, Jason Scheffer, Director of Inventory of The Vitamin Shoppe observed, “If you think about a traditional replenishment model, ultimately it asks you to set a service level, and you are often thinking to yourself, 'what is the right service level to have the lowest amount of inventory but capture the most sales?' So, that’s what this [the 4R] service model actually does, it actually does that, it doesn’t ask you to set a target service level but actually goes out based on the sales, margin data you have as well as the inventory carrying cost inputs we provide and gives us our highest profitability solution.”
4R clients have found these answers drive profit improvements of 100’s of basis points.
4R’s Inventory Profitability Maximization (IPMax) Services are built around an investment philosophy that retailers are actually investors who take liquid cash and invest it into product to make a profit.
We’ve focused on key decisions which confront retailers and drive overall profitability. IPMax Services help retailers monetize the risks of too much inventory and the risks of too little and, as a result, make decisions that maximize profitability.
More than theory, 4R clients have quickly seen significant and sustainable results where it counts—on both the top and bottom lines.
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